An Inquiry into the Principles of Political Oeconomy (Vol. 1 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxesSteuart, James, Sir
History
An Inquiry into the Principles of Political Oeconomy (Vol. 1 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxes
Steuart, James, Sir
Economics
This consideration ought to be a spur to every body. The richest men in
a trading nation have no security against poverty, I mean proportional
poverty; for though they diminish nothing of their income, yet by not
increasing it in proportion to others, they lose their rank in wealth,
and from the first class in which they stood, they will slide insensibly
down to a lower.
There is one consequence of an additional beneficial trade, which raises
demand and increases wealth; but if we suppose no proportional
augmentation of supply, it will prove at best but an airy dream which
lasts for a moment, and when the gilded scene is passed away, numberless
are the inconveniencies which are seen to follow.
I shall now point out the natural consequences of this augmentation of
wealth drawn from foreign nations, when the statesman remains
inattentive to increase the supply both of food and manufactures, in
proportion to the augmentation of mouths, and of the demand for the
produce of industry.
In such a situation profits will daily swell, and every scheme for
reducing them within the bounds of moderation, will be looked upon as a
hurtful and unpopular measure: be it so; but let us examine the
consequences.
We have said, that the rise of demand for manufactures naturally
increases the value of work: now I must add, that under such
circumstances, the augmentation of riches, _in a country, either not
capable of improvement as to the soil, or where precautions have not
been taken for facilitating a multiplication of inhabitants, by the
importation of subsistence_, will be productive of the most calamitous
consequences.
On one side, this wealth will effectually diminish the mass of the food
before produced; and on the other, will increase the number of useless
consumers. The first of these circumstances will raise the demand for
food; and the second will diminish the number of useful free hands, and
consequently raise the price of manufactures: here are shortly the
outlines of this progress.
Public-domain text, read in full here on John Shaqi.
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